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MIRA INFORM REPORT
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Report No. : |
495522 |
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Report Date : |
03.03.2018 |
IDENTIFICATION DETAILS
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Name : |
MERCK LTD
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Registered Office : |
Arco Tower 5F, 1-8-1 Shimomeguro Meguroku Tokyo 153-8927 |
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Country : |
Japan |
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Financials (as on) : |
31.12.2016 |
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Date of Incorporation : |
February1968 |
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Com. Reg. No.: |
0132-01-005901 |
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Legal Form : |
Limited Company |
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Line of Business : |
Import and wholesale of liquid crystals, pigments, reagents,
pharmaceuticals |
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No. of Employees : |
327 |
RATING & COMMENTS
(Mira Inform has adopted New Rating mechanism w.e.f. 23rd
January 2017)
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MIRA’s Rating : |
A+ |
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Credit Rating |
Explanation |
Rating Comments |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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Maximum Credit Limit : |
Yen 2,442.4 Million |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
NOTES:
Any query related to this report can be made
on e-mail: infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List
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Country Name |
Previous Rating (30.09.2017) |
Current Rating (31.12.2017) |
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Japan |
A1 |
A1 |
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Risk Category |
ECGC Classification |
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Insignificant |
A1 |
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Low Risk |
A2 |
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Moderately Low Risk |
B1 |
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Moderate Risk |
B2 |
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Moderately High Risk |
C1 |
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High Risk |
C2 |
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Very High Risk |
D |
JAPAN - ECONOMIC OVERVIEW
Over the past 70 years, government-industry cooperation, a strong work ethic, mastery of high technology, and a comparatively small defense allocation (slightly less than 1% of GDP) have helped Japan develop an advanced economy. Two notable characteristics of the post-World War II economy were the close interlocking structures of manufacturers, suppliers, and distributors, known as keiretsu, and the guarantee of lifetime employment for a substantial portion of the urban labor force. Both features have significantly eroded under the dual pressures of global competition and domestic demographic change.
Measured on a purchasing power parity basis that adjusts for price differences, Japan in 2016 stood as the fourth-largest economy in the world after first-place China, which surpassed Japan in 2001, and third-place India, which edged out Japan in 2012. For three postwar decades, overall real economic growth was impressive - a 10% average in the 1960s, 5% in the 1970s, and 4% in the 1980s. Growth slowed markedly in the 1990s, averaging just 1.7%, largely because of the aftereffects of inefficient investment and the collapse of an asset price bubble in the late 1980s, which entailed considerable time for firms to reduce excess debt, capital, and labor. Modest economic growth continued after 2000, but the economy has fallen into recession four times since 2008.
Japan enjoyed an uptick in growth in 2013 on the basis of Prime Minister Shinzo ABE’s “Three Arrows” economic revitalization agenda - dubbed “Abenomics” - of monetary easing, “flexible” fiscal policy, and structural reform. Led by the Bank of Japan’s aggressive monetary easing, Japan is making modest progress in ending deflation, but demographic decline – a low birthrate and an aging, shrinking population – poses a major long-term challenge for the economy. The government currently faces the quandary of balancing its efforts to stimulate growth and institute economic reforms with the necessity of addressing its sizable public debt, which stands at 235% of GDP. To help raise government revenue, Japan adopted legislation in 2012 to gradually raise the consumption tax rate. However, the first such increase, in April 2014, led to another recession, so Prime Minister ABE has twice postponed the next increase, now scheduled for October 2019. Structural reforms to unlock productivity are seen as central to strengthening the economy in the long-run.
Scarce in critical natural resources, Japan has long been dependent on imported energy and raw materials. After the complete shutdown of Japan’s nuclear reactors following the earthquake and tsunami disaster in 2011, Japan's industrial sector has become even more dependent than before on imported fossil fuels. However, ABE’s government is seeking to restart nuclear power plants that meet strict new safety standards and is emphasizing nuclear energy’s importance as a base-load electricity source. In August 2015, Japan successfully restarted one nuclear reactor at the Sendai Nuclear Power Plant in Kagoshima prefecture, and several other reactors around the country have since resumed operations; however, opposition from local governments has delayed several more restarts that remain pending. Reforms of the electricity and gas sectors, including full liberalization of Japan’s energy market in April 2016 and gas market in April 2017, constitute an important part of Prime Minister Abe’s economic program.
In October 2015, Japan and 11 trading partners reached agreement on the Trans-Pacific Partnership (TPP), a pact that had promised to open Japan's economy to increased foreign competition and create new export opportunities for Japanese businesses. Japan was the second country to ratify the TPP in December 2016; the United States signaled its withdrawal from the TPP on January 23, 2017, and as of April 2017 the agreement has not gone into effect.
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Source
: CIA |
Company
name and address
MERCK LTD
REGD NAME: Merck
KK
MAIN OFFICE: Arco Tower 5F, 1-8-1 Shimomeguro
Meguroku Tokyo 153-8927 JAPAN
Tel:
03-5434-4700 Fax: 03-5434-4705
E-Mail address: merck@merck.co.jp
ACTIVITIES
Import, wholesale
of liquid crystals, pigments, reagents, pharmaceuticals
BRANCHES
Osaka, Kanagawa,
other (Tot 7)
FACTORIES
Onahama
(Fukushima-Pref), Atsugi
OFFICER(S)
ANNASENTZ RALF,
PRES
Koji Okamoto, dir
Kiyoshi Nango, dir
Yen Amount: In million Yen, unless otherwise stated
SUMMARY
FINANCES FAIR A/SALES Yen 58,968 M
PAYMENTS REGULAR CAPITAL Yen 12,069 M
TREND SLOW WORTH Yen 53,361 M
STARTED 1968 EMPLOYES 327
COMMENT
IMPORTER & WHOLESALER SPECIALIZING IN INDUSTRIAL CHEMICALS & PHARMACEUTICALS, OWNED BY MERCK BV,
NETHERLANDS.
FINANCIAL SITUATION CONSIDERED FAIR AND GOOD
FOR ORDINARY BUSINESS ENGAGEMENTS.
MAX CREDIT LIMIT: YEN 2,442.4 MILLION, 30
DAYS NORMAL TERMS.
HIGHLIGHTS
The subject company
is the Merck Life Science operations & Merck Group functions arm in
Japan. Established initially in 1968 to
import and sell products from Germany, it today provides a total solution in
support the life science across all areas of activity, from conceptual bio
science research to drug discovery & pharmaceutical mfg, creating value of
every step in the process. The
subsidiary also includes Merck group functions, such as Finance, HR &
procurement which serve the different businesses & subsidiaries of Merck in
Japan.
FINANCIAL
INFORMATION
The sales volume
for Dec/2016 fiscal term amounted to Yen 53,968 million, a 4% fall from Yen
61,634 million in the previous term. The
recurring profit was posted at Yen 7,345 million and the net profit at Yen 2,354
million, respectively, compared with Yen 7,956 million recurring profit and Yen
2,810 million net profit, respectively, a year ago.
For the current term ending Dec/2017 the recurring profit is projected
at Yen 7,400 and the net profit at Yen 2,400 million, respectively, on a 3%
rise in turnover, to Yen 60,740 million.
The financial situation is considered FAIR and good for ORDINARY
business engagements. Max credit limit is estimated at Yen 2,442.4 million, on
30 days normal terms.
REGISTRATION
Date Registered: Feb 1968
Regd No.
0132-01-005901
(Tokyo-Meguroku)
Legal Status: Limited
Company (Kabushiki Kaisha)
Authorized: 341,300
shares
Issued:
341,300 shares
Sum: Yen
17,069 million
Major
shareholders (%): Merck Chemicals BV (Netherlands) (100)
Nothing
detrimental is known as to the commercial morality of executives.
OPERATION
Activities: Imports, researches, develops, manufactures
and wholesales liquid crystals, pigments
for industrial use, optical & energy related materials (vacuum vapor
deposition chemicals, high temperature superconductivity materials), Specialty
chemicals (cosmetic raw materials, pharmaceuticals bulks & intermediates,
food additives & natraceuticals, Custom synthesis & services), reagents
(chromatography related products, environmental
analysis/microbiology/microscopy, life science related products, general
analytical reagents),pharmaceuticals (auto-hypertensive drugs, anti-cancer
drugs, supplementary treatment of anaphylactic reactions), others (--100%).
Clients: [Mfrs,
pharmaceutical mfrs, wholesalers] Merck group firms, domestic agents, other.
No. of accounts: 350
Domestic areas of activities: Nationwide
Suppliers: [Mfrs,
wholesalers] Merck KGaA and group firms, other.
Payment
record: Regular
Location: Business area in Tokyo. Office premises at
the caption address are leased and maintained satisfactorily.
Bank
References:
Deutche
Bank (Tokyo)
MUFG
(Meguro-Ekimae)
Relations:
Satisfactory
FINANCES
(In
Million Yen)
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Terms Ending: |
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31/12/2017 |
31/12/2016 |
31/12/2015 |
31/12/2014 |
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Annual
Sales |
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60,740 |
58,968 |
61,634 |
61,123 |
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Recur.
Profit |
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7,400 |
7,345 |
7,956 |
7,650 |
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Net
Profit |
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2,400 |
2,354 |
2,810 |
2,732 |
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Total
Assets |
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77,410 |
81,290 |
32,492 |
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Net
Worth |
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53,361 |
48,377 |
18,376 |
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Capital,
Paid-Up |
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17,069 |
15,569 |
2,100 |
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Div.Ttl
in Million (¥) |
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900 |
2,000 |
0.00 |
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<Analytical Data> |
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(%) |
(%) |
(%) |
(%) |
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S.Growth Rate |
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3.01 |
-4.33 |
0.84 |
9.57 |
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Current Ratio |
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.. |
.. |
.. |
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N.Worth Ratio |
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68.93 |
59.51 |
56.56 |
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N.Profit/Sales |
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3.95 |
3.99 |
4.56 |
4.47 |
Notes: Forecast figures for the 31/12/2017 Fiscal
Term.
FOREIGN EXCHANGE RATES
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Currency |
Unit
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Indian Rupees |
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US Dollar |
1 |
INR 65.23 |
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1 |
INR 89.71 |
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Euro |
1 |
INR 79.50 |
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YEN |
1 |
INR 0.62 |
Note:
Above are approximate rates obtained from sources believed to be correct
INFORMATION DETAILS
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Analysis Done by
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PRI |
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Report Prepared
by : |
TRU |
RATING EXPLANATIONS
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Credit Rating |
Explanation |
Rating Comments |
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A++ |
Minimum Risk |
Business dealings permissible with minimum
risk of default |
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A+ |
Low Risk |
Business dealings permissible with low
risk of default |
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A |
Acceptable Risk |
Business dealings permissible with
moderate risk of default |
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B |
Medium Risk |
Business dealings permissible on a regular
monitoring basis |
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C |
Medium High Risk |
Business dealings permissible preferably
on secured basis |
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D |
High Risk |
Business dealing not recommended or on
secured terms only |
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NB |
New Business |
No recommendation can be done due to
business in infancy stage |
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NT |
No Trace |
No recommendation can be done as the
business is not traceable |
NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.
This score serves as a reference to assess
SC’s credit risk and to set the amount of credit to be extended. It is
calculated from a composite of weighted scores obtained from each of the major
sections of this report. The assessed factors are as follows:
·
Financial
condition covering various ratios
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Company
background and operations size
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Promoters
/ Management background
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Payment
record
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Litigation
against the subject
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Industry
scenario / competitor analysis
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Supplier
/ Customer / Banker review (wherever available)
This report is issued at
your request without any risk and responsibility on the part of MIRA INFORM
PRIVATE LIMITED (MIPL) or its officials.